Trust busting is an example of a regulation to promote: (hint: starts with an e)

2.

The case of the Savings and Loan industry in the United States illustrates all except which one of the following:

A.

Excessive government regulation can make it difficult to respond to new economic conditions by burdening them with bureaucratic guidelines and costly implementation procedures

B.

The issue of business regulation is not a simple issue of whether to regulate or not to regulate

C.

The challenge of regulation is to achieve the proper balance between government controls and free-market mechanisms

D.

Private investors should be left completely in control of the economy, since government intrusion infuses dishonesty into business practices

3.

The era of "New Social Regulation" which addressed issues such as the environment and worker safety differed from the previous two eras of regulatory reform in that the:
"regulations agencies established during the third wave have larger mandates than those created earlier. They have responsibility for:

A.

A single industry

B.

Firms of all types

C.

No responsibility

4.

Government support for agriculture in the form of price supports and income subsidies which was reinstated after being phased out durring the 1996 Agricultural Act.

5.

"increased government spending" during times of economic downturns. This deficit spending "spending more than it gets from taxes" gives consumers more money in their hands which expected to increase spending by consumers, thereby stimulating the economy.Hint: Key

6.

_______________-side economics was based on the supply side of spply and demand

7.

The large national _________________(1 words) or __________ (1 word) has restricted the use of fiscal policy (Keynesian economic) as an instrument for stimulating the economy

8.

The Federal Reserve Board is charged with establishing which type of policy?Hint: think dollars

9.

Monetary policy includes all of the following assumptions except:

A.

Control of the money supply is key to sustaining a healthy economy

B.

Too little money in circulation contributes to inflation

C.

Too little money in circulation contributes to a slowdown in consumer buying

D.

Too little money in circulation contributes to a slowdown in production

10.

A major controversy surrounding the Federal Reserve's role in economic policy include:

A.

The Fed's political accountability

B.

Manipulation of the national economy

C.

The Fed's relationship to banking interests

D.

B and c only

E.

A, b and c

11.

Economic efficiency is measured by:
the relationship of the __________ (or productivity costs) to _________ ("the product or service). The greater the output compared to the input determines efficiency.

12.

When customers do not pay all the costs that society has incurred in the production of goods and services, the unpaid costs are called: (hint: opposite of internal)

13.

Government intervention in the economy occurs to: _____________ the economy, _________inflation, adjust the __________ supply, and address the national _________.

14.

When in office, the Democratic party would typically favor all except which of the following economic policies: increased government spending for the _______________________

15.

The _______________ for Americans is defined as:
"the annual cost of a thrifty food budget for an urban family of four multiplied by _______ to include the cost of housing, clothes and other necessities. Families, whose incomes fall below that line are officially considered poor."

16.

According to survey data, the form of assistance that Americans favor most is:

A.

Cash grants to poor families

B.

Education and job training

C.

Government jobs through government programs

D.

Government services for the poor

17.

The leading social insurance program is:

18.

Social insurance programs have high levels of public support largely because:

A.

They think of it as a handout or charity

B.

They believe because they paid taxes on it during their working years it is not really charity, they earned the benefits that are there if they need them

C.

Because most believe it should be the responsibility of taxpayers to fund welfare programs

D.

None of the above

19.

Of the following is probably the least criticized public assistance program:

A.

Supplemental Security Income (SSI)

B.

Aid to Families with Dependent Children (Pre TANF)

C.

Food Stamps

D.

Medicaid

20.

Most social welfare programs are:

A.

Uniform throughout the states

B.

Widely supported by Americans

C.

Run jointly by the state and federal governments

D.

Managed entirely by the federal government

21.

The U.S Welfare System is inefficient in the sense that: a large portion of the welfare budget never reaches the people it is intended to help but is spent on the large bureaucracy that is required to administer the program.

A.

True

B.

False

22.

The poverty line was set at an annual income of roughly:

A.

$25,000 for a family of four

B.

$30,000 for a family of four

C.

$20,000 for a family of four.

D.

$40,000 for a family of four

23.

When the government gives a benefit directly to an individual, such as in the form of a check made out in their names, it is called what kind of a payment?

24.

Which concept of government maintains that government intervention is necessary to enhance personal liberty and security?

25.

This type of health insurance ______________ is available for poor people who are already on welfare.

26.

Americans tend to favor:

A.

A guaranteed annual income for every American family

B.

Reduction of welfare expenditures

C.

Labor intensive welfare policies to make sure that people getting benefits really need them

D.

a and b only

E.

B and c only

27.

An Act that passed congress and signed by the president provides:
1. An end to the cash guarantee of cash assistance to needy families
2. for cash grants to states who must take responsibility for welfare recipients
3. a limitation of 5 years to receive welfare
4. that states must help welfare recipients find employment

28.

In his post WWII analysis of Soviet foreign policy aims, George Kennan recommended

29.

The ________________is also known as the European Recovery Plan, and it provides " billions of dollars in unprecedented aid for postwar rebuilding of Europe after WWII."

A.

Meridian Plan

B.

Morrison Plan

C.

Miles Plan

D.

Marshall Plan

30.

The idea that nations should act together in response to problems and crises is called:

31.

32. For the most balanced assessment of foreign and military policy issues, the President, in most instances would be advised to follow the recommendations of:

A.

Department of State

B.

Department of Defence

C.

National Security Council

D.

Joint Cheifs of Staff

32.

The policy of ____________ which the United States followed during the ____________is based on the idea that: "any nation would be deterred from launching a full-scale nuclear attack on the United States by the knowledge that, even if it destroyed the country, it too would be obliterated."

33.

The fundamental cause for _____________ in developing countries has been __________against economically and politically powerful ruling elites

34.

As an instrument of U.S. economic policy, military force:

A.

has become more important because of the threat of international terrorism to the free flow of U.S. goods

B.

Has become more important because of rising tensions are disrupting the creation of new markets for U. S. goods

C.

Has become less important because the world economy is now so interconnected that the use of military force would usually be more disruptive than helpful

D.

Has become less important because it places too heavy a drain on an already straining economy

35.

36. The chief instruments of national security policy include all except which one of the following:

A.

Reconstruction

B.

Diplomacy

C.

Military force

D.

Economic exchange

E.

Intellegence gathering

36.

Which type of military action is most likely to be used today? ___________ type action

37.

The changing post-Cold War world economy has impacted the U.S. by:

A.

Vaulting the U.S. to global economic dominance

B.

Weakening the position of the U.S. in the world economy

C.

Enabling Japan and Germany to become leading economic powers

D.

Reducing the strength of the European Union

E.

A and C

38.

Approximately what percent of the U.S. federal budget is devoted to foreign aid: